Greater New Orleans

U.S. Attorney Kenneth Polite's office has announced former Jefferson Health Care Centers financial officer Ebony Williams White has been indicted after allegedly transferring more than $207,000 in clinic funds to her personal bank account.
(NOLA.com | The Times-Picayune archive)

The former finance chief for Jefferson Community Health Care Centers, accused of transferring more than $207,000 in clinic money to her personal bank account, has been indicted in federal court. Ebony Williams White, 33, of Katy, Texas, faces seven counts of wire fraud and one count of obstruction of justice.

White worked at the Marrero-based nonprofit from February 2008 until March 2010, eventually becoming its chief financial officer. The indictment, handed up Thursday, charges that she schemed to transfer money from the clinic's bank account into a separate account she controlled.

The obstruction charge stems from White allegedly fabricating a document that suggested she was owed $137,000 plus bonuses for work in addition to her regular duties, the U.S. attorney's office said. Others who allegedly approved the additional payments denied there was an agreement to pay her extra.

The allegations were first made public by Legislative Auditor Daryl Purpera's office. Financial reviews of the nonprofit clinics, run by political allies of then- Jefferson Parish Councilman Byron Lee, found a litany of problems, including a donation of health care center money to Lee's campaign.

A 2010 audit uncovered $100,000 in missing checks, $100,000 in interest- free loans and overbilling of the public West Jefferson Medical Center. After that report's release, White and chief executive officer Carol Smith resigned.

The 2012 audit found that White transferred more than $123,000 into her personal account in 2009 as payments for insurance premiums and 401(k) benefits. She allegedly asserted that Smith approved a second transfer.

That audit also questioned $135,000 in payments, including $17,744 to Smith and $3,000 to White, for vacation they had not earned. In the report, Smith said she did not approve and was not involved in White's transfers of the money.

The same report uncovered a $1,000 to Lee's campaign and disclosed that Lee's siblings worked for the non-profit. At the time, Lee said he was not aware clinic money ended up in his campaign account. He returned the money, and he said he had no role in the hiring of his siblings.

This week, the health care centers received a clean audit from the legislative auditor.

If convicted, White faces a maximum 160 years in prison and a $250,000 fine. Maximum penalties for first-time offenders, however, are rare in federal court.

Special Assistant U.S. Attorney Juliana Etland is prosecuting the case. It was investigated by the U.S. Department of Health and Human Services, the FBI, the legislative auditor's office and the U.S. attorney's office.